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KOLKATA: A drop in the price of platinum this festive season, which kicked off with Dussehra, has pushed up the demand of the rare metal by 40% over the last few days. Jewellers say that consumers in India are gradually becoming more investment-oriented and are looking at the best resale value for ornaments in addition to the daily use and a different look.

Currently, one gram of platinum costs Rs 3,000 compared to a gram of gold, which is at Rs 3,140. Consumers have started considering platinum a better investment option as they think that the precious metal has the potential to surpass gold in the near future.

It may be mentioned that gold and platinum prices are generally determined by international prices.

During festival seasons, local demand and currency movement also influence the prices to some extent. The rupee, which closed at 53.70 against dollar, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

"Internationally platinum prices have started inching upwards. Price has gone up to $1,577 per ounce from $1,535 per ounce in last two days. So, already there are signs of a rally. Prices will go up further if industrial activity picks up across the globe. Platinum is used by the automobile industry worldwide," said Prithviraj Kothari, managing director, Riddisiddhi Bullions.

His company sells platinum bars of varied sizes ranging from 1 gm to 100 gm. Jewellers say that consumers who have been holding back their purchase of precious metals have slowly returning to the market.

Abhishek Gupta, president of Gitanjali Gems, said: "There has been an increase of almost 40% in platinum sale from the week beginning Dussehra. However, the offtake of platinum cannot be compared with gold as India is still a country with a huge appetite for the yellow metal. But the platinum market is gradually developing in India and the young crowd is favouring this precious metal."

In fact, the surge in demand for platinum has forced Mumbaibased leading platinum player, Popley Jewellers to open shop-nshops in their retail outlets. Rajiv Popley, director of Popley Jewellers, said: "The rarity of platinum will drive its prices northwards in the next two to three years."

The investment demand in platinum is also on the rise. National Spot Exchange (NSEL) has witnessed some 12,500 accounts added in last 15 days with a total volume of 11 kg.

"Initially, the number of participants were 100 to 200. But it has now started picking up," said Anjani Sinha, MD & CEO, NSEL.